Adnoc’s XRG acquires 11.7% stake in US Rio Grande LNG project

Dubai: Adnoc’s international gas subsidiary, XRG P.J.S.C., has completed the acquisition of an 11.7% equity stake in Phase 1 of the Rio Grande LNG project in Brownsville, Texas.

The deal, first announced in May 2024, marks XRG’s first gas infrastructure investment in the United States. It was executed through an investment vehicle of Global Infrastructure Partners (GIP), part of BlackRock, with XRG purchasing part of GIP’s existing stake.

Phase 1 of Rio Grande LNG includes three liquefaction trains currently under construction. A Final Investment Decision (FID) for a fourth train was taken earlier this month.

When complete, the project is expected to reach a total potential capacity of 48 million tons per annum (mtpa), underscoring the growing role of the US as a major LNG exporter.

5,000 jobs

The investment advances XRG’s strategy to expand its international gas portfolio and meet rising energy demand driven by industrial growth, artificial intelligence, and global economic activity.

Mohamed Al Aryani, President of XRG International Gas, said LNG demand is projected to grow by 60% by 2050, adding that the deal strengthens the company’s “disciplined, long-term investment approach.”

At peak construction, the project is expected to employ more than 5,000 workers and later create 350–400 long-term operational jobs.

In parallel, Adnoc signed a 20-year offtake agreement for 1.9 mtpa of LNG from Rio Grande’s fourth train, further cementing the UAE’s position in the global LNG supply chain.

XRG, wholly owned by Adnoc, holds gas and chemicals investments across the Caspian region, Africa, and the Americas, and has been tasked with building the company’s global gas business.